Date

2015

Document Type

Dissertation

Degree

Doctor of Philosophy

Department

Economics

First Adviser

Meyerhoefer, Chad D.

Other advisers/committee members

Yang, Muzhe; Panovska, Irina; Cawley, John

Abstract

These papers are concerned with estimating the marginal effect of weightand obesity on medical expenditures for children and adults when heightsand weights are misreported. The first chapter investigates the implicationsof reporting error and endogenous instruments in GLM and IV-GLM models.We evaluate standard IV estimation along with regression calibratedIV estimators (RCIV). We find that the standard regression calibrated IVmodel is fundamentally inconsistent, but propose an adjusted RCIV estimator(ARCIV) that corrects these faults, as well as incorporating correctionfor misreporting. Chapter 2 contains an application of the ARCIV from thefirst chapter to estimate the marginal effect of changes in BMI of childrenon their annual medical care costs. After correcting for reporting error andinstrumenting, we find that the impact of youth obesity is significantly largerthan found in previous research. Chapter 3 updates previous estimates theimpact of adult obesity on medical expenditures. Although prior research hasused instrumental variables to estimate the cost of adult obesity, controllingfor measurement error using our ARCIV estimator shows that the true effectis still larger than found in non-IV models, but smaller than IV models withmismeasured BMIs.

Included in

Economics Commons

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